beefsteak
15th March 2012, 01:56 PM
Jefferies to Buy MF Global Precious-Metals Assets (http://www.usagold.com/cpmforum/2012/03/15/jefferies-to-buy-mf-global-precious-metals-assets/) Mar 15th, 2012 11:13 by News
Investment bank Jefferies Group Inc.’s commodities arm has agreed to buy the gold, silver and other precious-metals assets from the trustee liquidating MF Global Holdings Ltd.’s brokerage business.
James Giddens, the trustee overseeing the liquidation of MF Global’s brokerage’s commodities business, said in a court filing Monday that an offer from Jefferies Bache Financial Services Inc. is the “best available opportunity” to sell the remaining physical property under his control.
Jefferies is buying the warehouse certificates—not the actual gold and silver bars—of MF Global’s former commodities customers.
…The sale therefore represents an “attractive opportunity” in a market environment in which other means of liquidating the certificates are unlikely or would be subject to a “far greater liquidation haircut,” Mr. Giddens said in court papers.
[source--wsj (http://online.wsj.com/article/SB10001424052702304692804577281723236803052.html)]
PG View: The trustee’s comments about the liquidity of these warehouse certificates sends a very clear message: Buy physical and take delivery.
An industry insider familiar with the deal tells me this is purely a play by Jefferies to acquire the former commodities clients of MF Global. Jefferies apparently has the connections with HSBC (the custodian of the actual metal) and is far more likely to be able to get the metal or sell the certificates than some lawyer handling the bankruptcy. What they want is these former MF clients to start trading with them. [/quote]
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OBSERVATION:
Hmmm...wonder if Gerald Celente will so be back to singing his normal basso profundo with this new development, instead of his castrati soprano choir section reassignment he's been "nudged" into recently?
beefsteak
Investment bank Jefferies Group Inc.’s commodities arm has agreed to buy the gold, silver and other precious-metals assets from the trustee liquidating MF Global Holdings Ltd.’s brokerage business.
James Giddens, the trustee overseeing the liquidation of MF Global’s brokerage’s commodities business, said in a court filing Monday that an offer from Jefferies Bache Financial Services Inc. is the “best available opportunity” to sell the remaining physical property under his control.
Jefferies is buying the warehouse certificates—not the actual gold and silver bars—of MF Global’s former commodities customers.
…The sale therefore represents an “attractive opportunity” in a market environment in which other means of liquidating the certificates are unlikely or would be subject to a “far greater liquidation haircut,” Mr. Giddens said in court papers.
[source--wsj (http://online.wsj.com/article/SB10001424052702304692804577281723236803052.html)]
PG View: The trustee’s comments about the liquidity of these warehouse certificates sends a very clear message: Buy physical and take delivery.
An industry insider familiar with the deal tells me this is purely a play by Jefferies to acquire the former commodities clients of MF Global. Jefferies apparently has the connections with HSBC (the custodian of the actual metal) and is far more likely to be able to get the metal or sell the certificates than some lawyer handling the bankruptcy. What they want is these former MF clients to start trading with them. [/quote]
=================================
OBSERVATION:
Hmmm...wonder if Gerald Celente will so be back to singing his normal basso profundo with this new development, instead of his castrati soprano choir section reassignment he's been "nudged" into recently?
beefsteak